Accounting Principles and Practices

Explanation: Management accounting provides information to the management for all the functions of management—planning, co-ordination, control etc and not simply a single function

Explanation: Budgets are prepared and provided by the accountants to the management to plan, implement, review and take control measures.

Explanation: Financial accounting recognizes the transactions as happened. Management accounting recognizes inflation and its effect on the transactions in the company

Explanation: External economic and social factors particularly in these days of globalization influence the operations of the business. Hence they are appraised by the management accountants.

Explanation: Management accountant is also a controller and in this sense he has to properly interpret the financial statements

Explanation: Financial Accountants prepare the books of accounts as prescribed by the statute. Management accountants classify and codify them for the purpose of analysis and interpretation

For purchase order voucher, we have to click F11, then activate purchase order processing by clicking yes. Then we have to select accounting voucher from gateway of Tally and click Alt + F4. Purchase Order Voucher screen appears.

All non-cash transactions are entered in journal voucher. From Gateway of Tally, we first select Accounting Vouchers and then press F7 for journal voucher. For example, depreciation on machinery which is a non-cash transaction and is entered in journal. 

Outstandings from debtors is the amount which is due from debtors, that is the amount which is still left to be paid by debtors. To show outstandings from debtors we have to select display, then statement of accounts, outstandings and receivables.

  We have to select display from gateway of tally. Then we have to select account books and then sales register. In sales register we get details of sales month wise like total sales in month of April, May, June etc.

Sales return accounts are typically recorded in the Sales Return Book, which is a subsidiary book, not a specific ledger like the sales or purchase ledger.

The Journal Proper is used to record transactions that do not fit into any other subsidiary book, such as credit purchases of assets like machinery.

A total creditors account (or creditors control account) is maintained to summarize the balances of all individual creditors. This is typically found in the suppliers ledger or creditors ledger.

The realization concept states that revenue is recognized when the legal right to receive it arises, which happens at the time of sale, regardless of when cash is actually received.